The proposed realignment of interests, legal ownership, and management of several firms within the Godrej Group have been approved by the Competition Commission of India (CCI), the antitrust agency announced on June 18.
"The proposed combination relates to realignment of interests, legal ownership, and management of various entities within the Godrej group pursuant to an inter-se arrangement between the members of the Family Branches viz Adi Godrej and family (ABG Family), Nadir Godrej and family (NBG Family), Jamshyd Godrej and family (JNG Family) and Smita Crishna and family (SVC Family)," CCI said in a release.
Such realignment will take place under the Family Settlement Agreement (FSA) dated April 30, 2024, executed by the family branches, it added.
Leading a massive $5.7 billion enterprise, the Godrej family came to a peaceful split of the organisation in April, an unusual development in the often tense world of family business divisions.
According to a late-day stock market filing on June 18, the five listed firms of the Godrej Group, which include holdings in consumer goods, real estate, agriculture, chemicals, and gourmet retail, would continue to be under the management of Adi Godrej, the patriarch of the family, and his brother Nadir Godrej.
Along with its affiliates and a sizable land bank, the unlisted Godrej & Boyce Mfg. Co. will be given to the cousins Jamshyd and Smita. Nyrika Holkar and Pirojsha Godrej have emerged as the companies' two most important next generation leaders.
The target enterprises forming part of the proposed combination include the Godrej Industries & Associate Companies (GILAC) Group entities and G&B Group firms.
GILAC Group companies include Godrej Industries Ltd, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and AstecLifesciences Ltd, while G&B Group Entities include Godrej & Boyce Manufacturing Company, Godrej Holdings, Godrej Infotech, and RKN Enterprises.
The family settlement deal involves 26 people in all. Both organisations are "committed to strengthening their shared heritage" and will keep using the "Godrej" trademark, according to a statement released by the group. The use of the brand is permitted without incurring royalties.
The 127-year-old corporation was divided in order to respect the varying opinions within the family over business tactics, particularly from the younger members of the family.
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